As a new business owner, it can often feel like the world is against you.
There’s a lot to take care of, from managing your cash flow to finding customers and keeping good financial records for tax purposes.
What’s more, it may even seem like other businesses are taking off overnight, while you’re having to grind and grind just to make a smidge of progress.
The reality is that business breakthroughs usually aren’t random (e.g. a viral post, a big client, or a perfect hire).
Rather, they are the result of groundwork that’s already been laid, meaning you can deliberately set up the conditions for your own breakthrough.
In this article, we’ll walk you through the steps you can start taking today to create your own luck and, ultimately, supercharge your business.
What does a breakthrough actually look like?
First of all, a business breakthrough doesn’t necessarily mean suddenly becoming hugely successful.
It’s often a quiet shift as opposed to one big dramatic event.
What are some examples, though?
- Consistent customers – moving from constantly searching for the next sale to having repeat customers
- Reliable income – reaching a point where monthly revenue becomes more predictable
- Positive cash flow – consistently bringing in enough cash to cover costs, tax, etc., with some left over
- Hiring your first employee – freeing yourself from having to do everything in the business, and also increasing the business’s capacity
So, “breakthroughs” can actually be quite mundane, but even still, these smaller milestones are a sign of things to come and fundamentally change the way your business operates moving forwards.
Signs you’re due for one
Most business owners will likely know if they’re in need of a little boost – but the most common signs are:
- You’re busy but not necessarily growing
- You rely on a handful of clients for most of your revenue
- You’re the bottleneck in everything
- You lack clarity on your real numbers
5 steps to create your breakthrough moment
Okay, so you know what you’re looking for… now what?
If you feel your business could do with a breakthrough – maybe because growth has stalled or you’re not as clear on its future as you’d like to be – there are steps you can take to create the right conditions for one to occur.
1. Get clear on your numbers
It’s difficult to spot an opportunity for growth without having a thorough and detailed understanding of your cash flow, which means knowing your margins and also what types of jobs actually pay.
In this sense, good bookkeeping is your friend, as it gives a business owner a clear, up-to-date picture of everything that’s happening in their business financially.
For example, let’s say you run a deli and you’re thinking of doing Christmas hampers. If you’ve done them before, you can look back at your books to see how profitable they were.
If you made a loss or only broke even, you could rethink the idea. For instance, you might raise the price and make the hampers made-to-order (MTO), so you’re not left with unsold stock.
If they turned a healthy profit, you could put some of that money behind marketing this year to reach more customers.
2. Find what’s holding you back
For most small businesses just starting out, there’s usually some aspect preventing further growth, and if this can be identified and addressed, then there’s more room to grow.
An example might be a lack of time (or at least a perceived one), in which case you may want to consider bringing on additional employees to help share the load.
If it’s time spent doing your accounts, then consider hiring an accountant or a bookkeeper, who’ll be able to streamline the process for you, and also ensure you’re being compliant.
Other possible constraints on your business include your current pricing structure and your methods for sourcing or approaching leads.
Whatever’s holding you back, fix it and watch what happens.
3. Make one bold decision
Sometimes one key change is all it takes to reverse your business’s fortunes.
This may be connected to the one thing holding you back – e.g. your pricing – or it may be something else entirely.
Either way, real breakthroughs usually hinge upon a big choice, not simply increased effort on your part.
Perhaps you arrive at the conclusion that you need to raise your prices in order to properly compete, or maybe you realise you’re spread too thin and could use some additional help.
A big decision isn’t always about expanding, though; there could be a scenario where you would benefit from scaling down and settling into a niche of some kind.
4. Implement the systems to support it
This is about making your life easier, so you can focus on making real progress.
Automate things like admin, tidy your finances, and document your processes so sudden growth doesn’t threaten to overwhelm you – or even break the business entirely.
Good online bookkeeping software can reduce the amount of time you need to spend entering records and checking financial data manually, and also makes it easier to collaborate with an accountant or bookkeeper, as everyone’s kept in the loop.
5. Hang in there
Lastly, it’s important to commit long enough to actually see results, which can take time.
One simple approach is to set a 90-day window and see where you get in that time, tracking key metrics like your cash flow (in vs out), your profitability, and your general growth rate.
Common mistakes that delay a breakthrough
Part of hanging in there means you have to resist chasing tactics and trends instead of fixing the things that are actually holding your business back and blocking any potential breakthrough.
Ironically, though, trying to make too many changes all at once can be counterproductive, which is why it’s generally better to focus on one key area of your business at a time.
And again, you have to stick it out to truly see the results you’re after, as a breakthrough rarely happens overnight.
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